Saturday, January 31, 2009

The Saga of the Cigarette Tax

SB 114 by Sen. Christensen is the Senate bill that will raise the tax on cigarettes. It was unexpectedly routed to the Senate Revenue and Taxation Committee, rather than Senate Health and Human Services, and its supporters feared that it would die in committee. But during Friday's committee meeting, the bill was passed out by Sen. John Valentine. He will be amending the bill on the Senate floor to lower the rate from $3 to $1.30/pack. Rep. Ray has a competing bill in the House and now observers will be watching to see if the upcoming Senate version has a better chance of passing the House. With the support of the Governor, it seems likely that some version of the tax increase will get through this session.

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